Woolworths trading statement

Cape Town, W Cape, SA (August 1, 2019) – Shareholders are advised that earnings per share ('EPS'), headline earnings per share ('HEPS') and adjusted diluted HEPS for the 53 weeks ended 30 June 2019 are expected to be within the ranges reflected below:
 
  EPS
  June 2018 reported (cents): -369.5 
  June 2019 expected increase/decrease (%): 65.0% to 75.0%
   June 2019 expected range (cents): -92.4 to -129.3
 
  HEPS
   June 2018 reported (cents): 346.3
  June 2019 expected increase/decrease (%): -3.5% to 1.5%
  June 2019 expected range (cents): 334.2 to 351.5
 
  Adjusted diluted HEPS
   June 2018 reported (cents): 364.1
   June 2019 expected increase/decrease (%): -2.5% to 2.5%
  June 2019 expected range (cents): 355.0 to 373.2
 
  EPS reflects a further impairment of the David Jones business. An impairment charge of AUD437.4 million (net of deferred tax) will be recognised at the period end 30 June 2019, reducing the valuation of David Jones to approximately AUD965 million. A strategic review of the David Jones store portfolio has also identified stores with onerous leases resulting in an additional provision of AUD22.4 million at period end.
         The impairment reflects the economic headwinds and the accelerating structural changes affecting the Australian retail sector as well as the performance of the business, which has fallen short of expectations. The WHL Board believes that the valuation of David Jones is realistic and reflective of its prospects.
         EPS, HEPS and adjusted diluted HEPS for the pro forma 52 weeks ended 23 June 2019 are expected to be within the ranges reflected in the announcement.
         The Group manages its retail operations on a 52-week basis and, as a result, a 53rd week is required approximately every six years for realignment. The current year has 53 weeks. To facilitate comparison against the 52-week prior year, financial information for the current year has been presented on a 52 week basis, constituting pro forma information in terms of the JSE Ltd. ('JSE') Listings Requirements.
         The pro forma information, which is the responsibility of the Group's directors, has been prepared for illustrative purposes only, and may not fairly present the Group's financial position, changes in equity, cash flows or results of operations.
         The information contained in this announcement, including the estimated financial information and pro forma financial information, has not been reviewed or reported on by the Group's external auditors.
         The Group's year-end results for the 53-week period ended 30 June 2019 are scheduled to be announced on the SENS on or about 29 August 2019.